Get to know cash flow before investing

cash flow before investing

Cash flow is a statement that represents a change in the financial status of the business. 

This is a budget that is very important to the business because if managed well, the business will obtain liquidity and reduce financial risks. When reading and understanding the cash flow statement, you need to consider 3 things to know whether or not cash flow is generated by investments. First, learn if it’s a positive value as this means the business has sold the property. If the value is negative, this means the company has invested more than it should, which would be considered a good result. Second, reading the cash flow from financing. If there is a negative value, the debt has been paid or paid by dividends. On the other hand, If the value is positive, it means the company is financing the capital increase. Finally, operating cash flow where this section should be positive or close to net profit because it will show the liquidity of the good business.

Cash flow  

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